Short interest in insurer Prudential has fallen to its lowest level in ten days in a strong indicator of the market’s rising conviction that UK insurer Prudential’s troubled acquisition of AIA will collapse.

According to market analyst Data Explorers, 6.39% of the shares in Prudential were on loan at close of play on Friday 7 May (the most recently available data), down from 7.61% on Thursday and 8.04% on Wednesday, and the lowest proportion since 28 April.